Types of Enterprises, Public enterprises, Private enterprises, Not-for-profits, Public enterprises (Types of Enterprise and Their Contribution), Owned and controlled by the government at either the national or local level. Semi-states operate as a commercial enterprise, but are government owned., Public enterprises - Local impact:, Provides essential local services (local transport), help community development, Public enterprises - National impact:, Improves Infrastructure, Essential National Services (education/healthcare), Private enterprises (Types of Enterprise and Their Contribution), Owned by individuals or shareholders and operate for profit, Private enterprises Local impact:, Create jobs, positive local spin-off effect, create social fabric/vitality for an area, Private enterprises National impact:, Contributes to GDP/Economic growth, increase exports, contribute tax revenue, Not-for-profits (Types of Enterprise and Their Contribution), Exist to achieve a social, cultural, or community goal rather than to make a profit for owners or shareholders., Not-for-profits Local impact:, Foster social inclusion, create jobs and offer volunteer opportunities, Not-for-profits National impact:, Provide vital services, help solve social issues, influence government policy, Ownership types, Sole trader, Partnership, Private limited company (Ltd), Designated Area Company (DAC), Public Limited Company (PLC), Co-operatives, Franchises, Public Sector, Sole trader (Ownership types), 1 owner/easy to setup; unlimited liability; private accounts; not separate legal entity, Partnership (Ownership types), 2-20 owners, unlimited liability; private accounts; not separate legal entity, Private limited company (Ltd) (Ownership types), 1-149 owners, limited liability, separate legal entity, continuity of existence., Designated Area Company (DAC) (Ownership types), Limited company formed for a specific purpose in a regulated industry (banking), Public Limited Company (PLC) (Ownership types), Shares sold on stock exchange; unlimited owners; published accounts; limited liability, continuity of existence, Co-operatives (Ownership types), Democratically controlled (one member, one vote); jointly owned by members for common goal; limited liability; not profit driven; limited finance, Franchises (Ownership types), Franchisor gives permission to franchisee to use their idea/logo/brand in return for a fee / % of profits; + proven, mentoring, customer base – costly; reduced creativity, Public Sector (Ownership types), Government-owned businesses that provide essential services in the state, Why ownership types change over time, Limited Liability, Cont. of existence, Expansion, Tax Benefits, Privatisation, Nationalisation, Limited Liability (Why ownership types change over time), Move from unlimited to limited e.g. sole trader -> Ltd, Cont. of existence (Why ownership types change over time), Company ceases on death of owner in sole trader, not in Ltd, Expansion (Why ownership types change over time), Access to capital e.g. Ltd 1-149 investors vs partnership (2-20) or sole trader (1), Tax Benefits (Why ownership types change over time), Ltd pay 12.5%/15% tax on profits, sole trader are higher at PAYE rates 20/40%, Privatisation (Why ownership types change over time), Semi-state may be sold to private investors so it can raise more capital to compete, Nationalisation (Why ownership types change over time), Government may take over a private business that could fail to protect the industry / economy from it’s collapse e.g. nationalising banks to prevent them from failing., Regulation in business, Purpose of regulation, Internal, External, Purpose of regulation (Regulation in business), Ensure businesses operate safely, ethically, and sustainably. It protects stakeholders. Good regulation builds trust, reduces risk, and encourages transparency., Internal (Regulation in business), Internal Audit – Independent internal examination of firm (financial, environmental), Risk Management - identify all risks and potential losses it faces; minimise them, Compliance – Procedures to ensure they are adhering to laws and internal policies, Corporate Governance - Systems and processes used to manage a company, External (Regulation in business), Government Regulators – CCPC/WRC/EPA ensure businesses comply with rules, Legal Compliance – Laws e.g. Unfair Dismissals Acts 1977-2015 business must follow, External Audits – Outside business examines internal processes and reports on it, European Laws - Regulations and directives Irish business must follow., Governance, Governance refers to the system of rules, practices, and processes used to direct and control a business. It identifies who has the authority to make decisions and where the accountability for how a business behaves and performs lies., Factors Considered in an ESG Report, Environmental Factors, Social Factors, Governance Factors, Environmental Factors (Factors Considered in an ESG Report), This assesses how a company’s operations impact the environment and how it manages environmental risks and sustainability efforts. Emissions, energy sources, waste management, sustainability efforts, Social Factors (Factors Considered in an ESG Report), How a company interacts with its employees, customers, and communities. Employee rights, diversity, inclusion; consumer protection; Community engagement / CSR; Ethical supply chain, Governance Factors (Factors Considered in an ESG Report), Company’s internal controls, ethics, leadership, compliance with laws and regulations. Board composition, gender balance, transparency; Anti-corruption and ethical business practices; Compliance with financial regulations

Chapter 2 Key Takeaways

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